A shortage of housing and high house prices in recent years has made it increasingly hard for many people to obtain a home that they can afford either to own or to rent, particularly in the South of England. This shortage has a number of important consequences, creating difficulties and hardship for many people, who may find themselves living in inappropriate accommodation. It also has implications for public and private services as key workers are priced out of the market in some parts of the country.
This joint study by the Audit Commission and National Audit Office has taken as its focus one strand of the target improving the availability of affordable housing in high demand areas. Funding for new affordable housing, some £3.3 billion between 2004 and 2006 is allocated by the Office of the Deputy Prime Minister (ODPM) to the Housing Corporation which in turn provides grants and subsidies to housing associations and developers to deliver new housing. Against a target in 2004-05 to provide an additional 27,000 homes for rent or low-cost home ownership, including those for key workers, the Housing Corporation achieved 28,756 completions.
A complex delivery chain has developed around this funding flow, involving Government Offices for the Regions, Regional Housing Boards and Regional Planning Bodies, local authorities, housing associations and property developers. While addressing PSA 5 ODPM is also tasked to secure annual efficiency gains in social housing of £835 million by 2007-08, of which £355 million will come from housing associations. The report sets out ten areas where such efficiencies are likely to be achieved.
More generally the study makes various recommendations for national, regional and local bodies to improve both efficiency and effectiveness of the delivery chain highlighting in particular the need to increase the speed of delivery and to reduce the unit cost of housing.